Landlord and Tenant Board Update: New requirements for landlords who terminate a tenancy because they want to move in for their “own use.” Make you are aware of the process and the changes!
Earlier in the year we wrote about new legislation that would lead to a lot of big changes and new rules for Ontario landlords in 2017.
One of the immediate changes at the time was regarding rent control.
Previously many rental properties which were built after 1991 were exempt from rent control. This means they didn’t have to follow the rent increase guideline and could raise rents every year in order to cover their costs and maybe even make some cash flow.
After all, running a rental business and being a landlord has risks and often increasing costs. Smart landlords know raising rents is an important part of being successful just as any business owner would make sure their revenues allowed them to continue running their business and not lead to losses and bankruptcy.
With the new policy rental units built after 1991 are now under rent control. This means all the investors and new landlords who bought brand new condo rents along with all the other landlords across Ontario can only raise the rent by 1.8% in 2018.
Terminating a Tenancy For Your Own Personal Use
Another big change happened on September 1st regarding landlords own use of a rental.
With increasing house prices many landlords have children or parents looking for a place to stay in. It’s become popular for landlords to turn their rental property into a place for their kids or parents to make their home.
Many landlords are also downsizing. They bought a rental in years past and rented it out. Now they sold their own home and are looking to move to a smaller property and so want to move in to their rental.
While some in the media want to demonize landlords and claim landlords use the own use provision to “turf out” their tenants, those actually running rental properties in Ontario know it would be foolish to ask a good tenant to leave if there wasn’t a very good reason for it. Needing your property for yourself or your close family is one of those “good reasons.”
Landlords Own Their Rental Property and Have Property Rights….Or Not?
Many new landlords in our community have asked what could possibly be the issue about the owner wanting to move in to their own property? Or have their children or parents (or parents in-law) move in? These new landlords say they are the ones who bought the property. They are on title. They paid for the house and usually have a big mortgage to prove it.
We keep hearing over and over again “It’s my house! I have property rights…to my property.”
In Ontario if your property is rented there is a process you need to go through in order to terminate the tenancy. Fortunately, if you want your property for your own use, or for your kids or parents or parents-in-law you can terminate the tenancy. It’s just become more complicated and more expensive.
Let’s let the Landlord and Tenant Board explain:
To Ontario Landlords Association:
September 1, 2017
New Requirements for landlords who evict because they would like to move in.
The Ontario government has introduced new requirements for landlords who would like to evict a tenant so they or someone in their family can live in the unit.
Starting September 1, 2017, the landlord or family member must intend to live in the unit for at least one year. The landlord must also either give the tenant the equivalent of one month’s rent or offer the tenant another unit that the tenant accepts.
Only individual landlords, not corporations, can give notice of termination for this reason
Changes to Landlord and Tenant Board (LTB) Forms
The LTB has updated these four forms to reflect the changes.
To access these new forms you can click on the following:
Being using these new forms immediately.
Make sure you are getting the latest forum by always clearing your browsers cache. Please note that old versions of these forums will not be accepted after Sept. 20th 2017.
Smart and Successful Landlords Know The Rules
With the rules for landlords getting more complicated, it’s more important than ever for every Ontario residential landlord and investor to make sure you are knowledgeable. Even new rentals are under rent control and even if you need the property for your own use or the want your kids or parents to move in you will have to pay a lot of money to make it happen (as many small landlords don’t have extra units to offer tenants).
It’s also more important than ever to screen your tenants carefully and make sure you know who you are renting to. There are a lot of great tenants out there. There are also some tenants who will manipulate the system. We want good landlords and good tenants to join together to create a win-win situation in Ontario.
Be Smart, Be Careful, and Be Successful